All RSL stock to be compliant by March 2015 (unless an exemption or in abeyance)

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1 SHQS and EESSH

2 SHQS All RSL stock to be compliant by March 2015 (unless an exemption or in abeyance) To ensure that all properties are: Compliant with the Tolerable Standard - Free from Serious Disrepair - Energy Efficient - Provided with Modern Facilities & Services - Healthy, Safe & Secure DCH currently 99.63% compliant with Standard (sector average 82%, SHR March 2014) 36 properties fail, 18 tenant refusals and 18 No Access

3 EESSH Energy Efficient Standard for Social Housing EE Rating (RdSAP 2009 v9.91) Dwelling type Gas Electric Flats Four-in-a-block Houses non-detached Detached Other fuels (Biomass etc.) - SHQS requirements. EESSH Target 2020 Mid Point Review/ARC Reporting 2017 Main Points - Data issues (RdSAP 2005 v RDSAP 2009, soon to be 2012?) - Hard to Treat stock (non-trad, traditional tenements etc.) - Revisiting stock which has had SHQS compliance work carried out previously - Funding and impact on investment/lifecycle replacement programme - In the main, if RSLs have complied with the requirements of the SHQS, then the EESSH should not be too much of a barrier - Landlords who will have difficulty will be those with large amounts of non-trad stock, mixed tenure blocks and off-gas grid/rural properties

4 Main Challenges Assessing stock - Filling data gaps - Reducing amount of cloned information - Analysing stock information Finding a suitable technical solution, without impinging on space standards - Some technical solutions internally can be up to 200mm thick - Some solutions relatively new & untested Obtaining permissions (Listed Building Consent, Planning etc.) - Particularly in conservation or heritage areas - Planning/Warrant for EWI Disruption to occupants - Decants where internal solutions are the only option - Additional cost for HA - Additional upheaval for tenants Behavioural change - No point in doing work unless behaviour is not altered - Education on use of heating system and energy efficiency - Provision of Home Energy Advice, advice on tariff switching & energy advocacy

5 Home Energy Advice Team (HEAT)

6 More Challenges Funding Owners/Private Tenants can access: - Green Homes Cashback ABS Scheme (outright funding) - Green Deal (loan applied to utility costs) - ECO: Home Heating Cost Reduction Obligation (HHCRO) - or privately fund it themselves! RSLs can access the following: - Carbon Emissions Reduction Obligation (CERO) - Carbon Saving Community Obligation (CSCO) - Or funded from investment programme (HRA)

7 Difficult Times? A major get out clause for landlords if sufficient funding cannot be secured to carry out energy works especially to difficult to treat stock. However landlords will need to demonstrate (I presume) that efforts have been made to secure funding (and engage with private owners). The demise of ECO will result in a number of RSLs potentially being in this position. Some landlords face difficult decisions with VFM and achieving EESSH. E.g. is it reasonable to spend thousands on a property just to potentially increase it from say an E to a C rating just to achieve EESSH when landlords are under pressure with general maintenance funds. Scottish Govt infers selected disposal may be an option however local authorities (as strategic housing authority) are often unwilling to support disposal of much needed social housing stock. EESSH poses challenges for landlords in terms of rental charges. Is it reasonable to charge similar rents to tenants who are benefiting from low energy homes compared to those in living in homes with high energy running costs? At a time of welfare reform this issue is even more relevant. Driver for EESSH is Carbon saving linked to Scottish Govt Climate Change commitments. For RSL s principal driver has to be addressing fuel poverty which should not be a secondary issue but at core of RSL s EESSH programme. Challenge for RSL s is how to measure fuel poverty amongst our tenants and to demonstrate EESSH compliance has reduced the levels of fuel poverty.

8 Thank You Any Questions? Glenn Rivers Senior Surveyor (Planned) Dunedin Canmore Housing

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